Genetic variability is a pre-requisite to crop improvement. The objective of the present study was to assess and quantify the genetic variability, estimate heritability and genetic advance for yield and yield contributing characters of drought tolerant tef genotypes based on agro-morphological traits. A total of 49 tef materials [(42 drought tolerant tef advanced lines, the parents of the advanced lines (Dtt2, Dtt13, Quncho and the cultivar Kaye Murri), two varieties (Tsedey and Simada) released for low moisture area and a local check cultivar from each location)] were planted in 7 x 7 simple lattice design at Melkassa and Alemtena in the Central Rift Valley of Ethiopia. Important agronomic data were collected and subjected to analysis using statistical analysis software (SAS). The combined analysis of variance (ANOVA) over locations showed significant location and genotype main effects (P≤0.01) for most of the traits. The genotype x location interaction effect was not significant (P> 0.05) for all traits evaluated, except for days to physiological maturity and number of primary panicle branches per main shoot. Phenotypic coefficients of variation (PCV) and genotypic coefficient of variation (GCV) for the characters such as days to physiological maturity, number of fertile tillers per plant and days to seedling emergence showed very small difference demonstrating that the observed variations for these traits were mostly due to genetic factors with little impact of environment. High heritability and genetic advance were noted for panicle length and days to heading signifying the ease of phenotype-based selection for the improvement of those traits.